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Question 52 (1 point) Listen Let corn denote per capita consumption of corn in bushels, at the municipality level, let price be the price per
Question 52 (1 point) Listen Let corn denote per capita consumption of corn in bushels, at the municipality level, let price be the price per bushel of corn, let income denote per capita county income, and let rainfall be inches of rainfall during the last corn-growing season. The following simultaneous equations model imposes the equilibrium condition that supply equals demand: (1) corn=BotBj price + Byincome + u1 (2) corn=Ao+Aprice+Agrainfall+ U2 According to this SEM equation (1) is the market equation while equation (2) is the market equation which implies that should have a negative value while should have a positive value. supply; demand; B1; A1 O demand; supply; Bq; A1 O demand; supply; A1; B1 O supply; demand; A1; B1
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